Distribution network development amid policy actions: regulatory plans as a steering strategy

Abstract

Building a single high-voltage line in the distribution network can take 5 to 10 years from initial planning and construction permitting to full operation. The time required for increasing the capacity of high-voltage electricity distribution therefore poses a risk that the necessary level of network renewal for a reliable, decarbonized energy system may not be completed in time. Hence, a well-prioritized strategy for network renewal, based on a clear numerical understanding of changes in the operational environment, is needed. This study outlines the Finnish long-term distribution network planning framework to meet this need, supported by other regulatory steering elements, such as direct service level obligations and economic incentives to improve the network.